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Heather MacDonald
on Nov 25, 2024

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Other things equal, if the prices of a firm's variable inputs were to fall,

A) one could not predict how unit costs of production would be affected.
B) marginal cost, average variable cost, and average fixed cost would all fall.
C) marginal cost, average variable cost, and average total cost would all fall.
D) average variable cost would fall, but marginal cost would be unchanged.

Variable Inputs

Inputs or resources whose usage changes according to the level of production.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

  • Analyze the impact of changes in input prices on production costs.
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Macyrae BechterDec 02, 2024
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